AI in Health and Benefits: Hope Amid Tariffs

As an executive recruiter specializing in digital health/employee benefits, I’m always attuned to how global shifts shape opportunities for talent and organizations. The recent wave of tariffs under President Trump’s trade policies—most notably the 10% global import levy, 145% on Chinese goods, and targeted 30% duties on medical equipment from Asia—has created uncertainty for AI-driven digital health and employee benefits. Yet, the U.S.-U.K. trade deal, finalized May 8, 2025, offers a beacon of optimism, signaling that negotiation can pave the way forward. Here’s my take on the AI outlook in these sectors and why there’s light at the end of the tunnel.

Digital Health: AI Innovation Amid Cost Pressures

Digital health, a core focus of my recruiting practice, relies heavily on AI for diagnostics, tele-health, and personalized care. Tariffs on Chinese medical devices (145%) and Asian imaging equipment (30%) are driving up costs for tools like MRI machines and wearables, critical for platforms like Aidoc and Fitbit. Philips estimates a $280-340 million cost hit from these levies, which could strain budgets for AI-driven startups (Yahoo Finance, May 7, 2025). Data privacy concerns, heightened by incidents like Covered California’s recent breach, add complexity, pushing firms to invest in secure AI systems.

Despite these challenges, the U.S.-U.K. trade deal provides relief. By reducing U.K. duties on U.S. medical tech from 5.1% to 1.8% and streamlining digital trade, it ensures access to affordable components for AI platforms. This supports companies like Tempus, which uses AI for precision oncology, and mental health platforms like Talkspace, increasingly integrated into employee benefits. For candidates, this creates demand for leaders who can scale AI solutions while navigating regulatory and supply chain hurdles—roles I’m actively placing.

Employee Benefits: AI as a Cost-Saving Ally

In employee benefits, AI is transforming how employers deliver personalized, cost-effective solutions. Tariffs are exacerbating healthcare cost inflation, with Mercer projecting 6-8% annual premium increases due to pricier medical supplies. This pressures HR leaders to adopt AI-driven platforms like Nayya, which tailor benefits to individual needs, or Alight, which optimizes health and financial wellness offerings. Fintech integrations, such as BNPL for medical copays via Affirm, are also gaining traction, bridging my expertise in both spaces.

The U.S.-U.K. deal offers a lifeline by stabilizing supply chains for health tech hardware, ensuring platforms can scale without prohibitive costs. It also fosters transatlantic collaboration, enabling U.K.-based benefits firms to partner with U.S. providers on AI-driven wellness tools. As employers prioritize health equity and mental health, candidates with experience in AI-enhanced HR tech or value-based care are in high demand, a trend I see daily in my recruiting work.

A Path Forward

The tariff landscape—especially the steep Chinese and medical equipment levies—raises fears of inflation and reduced innovation, with J.P. Morgan estimating a 40% global recession risk. Yet, the U.S.-U.K. agreement shows that strategic trade deals can mitigate disruptions. For digital health and employee benefits, AI is a key ally, driving efficiency and personalization despite cost pressures. The future lies in leaders who can harness AI to deliver impactful solutions.

What’s your perspective? How are tariffs affecting your digital health or benefits strategy? Share your thoughts below—I’d love to hear how you’re navigating these challenges and explore how I can connect you with talent to drive your mission.